Good leather goods and saddlery growth for Hermès in Q3

Worldwide

Published: 09 November, 2017

Consolidated revenues for the exclusive luxury brand amounted to €4,050 million at the end of September 2017, up +10% at constant and current exchange rates, with the Leather Goods and Saddlery category recording a +11% growth in the quarter.

French luxury Group Hermès recorded solid growth in sales in the third quarter driven by all the geographical areas, with a well-balanced contribution from all sectors. Growth in the Leather Goods and Saddlery category (+11%) was in line with the annual growth target of around 10%, attributed to the success of the collections and the diversity of models, particularly the Constance, Halzan, Lindy and Verrou bags, alongside the Birkin and Kelly.

The business line benefitted from the production capacities of the new sites, according to the Group. Investments continued in the period with the France -based Maroquinerie de l’Allan, to be inaugurated by the end of the year, and the launch of the projects Maroquinerie de Guyenne and Maroquinerie de Montereau by 2020. As reported by ILM, after the opening of three workshops across France in 2016, the exclusive luxury brand is to open another two manufacturing sites in the country by 2020.

Also in the third quarter, the Ready-to-wear and Accessories division (+11%) confirmed its good performance, driven by the success of the ready-to-wear collections, as well as fashion accessories and shoes.

Asia excluding Japan (+14%) is reported to have pursued its progress in the period, despite a strong comparison basis, and benefitted in particular from the favourable sales momentum both in mainland China and in South Asian countries. Japan (+5%) achieved a solid performance, despite the strengthening of the yen, while the Americas (+9%) developed in a still contrasting economic environment. Hermès says it continued to expand in the region, including a new store opening in the Sao Paulo Iguatemi shopping mall, Brazil, in June. Europe (+9%) “confirmed its strong performance”, driven particularly by the success of the store openings and extensions in Rome, London and Munich, and by a good increase in the group’s stores in France.

In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the French Group confirms its ambitious goal for revenue growth at constant exchange rates.